Kohl’s Corporation (NYSE: KSS) shares plunged 11% following a disappointing Q3 earnings report and a sharp downgrade of its fiscal 2024 outlook. The department store chain reported adjusted earnings per share of $0.20, significantly below analysts’ expectations of $0.31. Revenue declined 8.8% year-over-year to $3.51 billion, missing the consensus estimate of $3.65 billion, while comparable sales fell 9.3%, reflecting continued weakness in its core apparel and footwear categories.
In response to the challenging environment, Kohl’s cut its full-year earnings forecast. The new range is $1.20 to $1.50 per share. This is a stark reduction from its prior outlook. It is also below Wall Street’s consensus of $1.86. The company now expects full-year net sales to decline by 7%-8%. Comparable sales are projected to drop 6%-7%. This signals further headwinds in the months ahead.
CEO Tom Kingsbury acknowledged the struggles in key categories but highlighted growth in segments like Sephora and home decor. However, these gains were insufficient to offset the broader declines. On a positive note, gross margin improved slightly, rising 20 basis points to 39.1%, and inventory levels were reduced by 3% year-over-year.
Kohl’s is facing mounting challenges. Weak consumer demand is weighing
Kohl’s shares Chart Analysis
KSS/USD 15-Minute Chart
The 15-minute chart of Kohl’s Corporation (NYSE: KSS) demonstrates significant price action and momentum shifts over recent sessions. After a prolonged downtrend, the stock bottomed near $16.12 on the 20th before experiencing a sharp bullish reversal. A strong green candlestick on the 22nd signals robust buying interest, pushing the price above $18.
The RSI (Relative Strength Index) initially showed oversold conditions below 30 before recovering, peaking above 70, signalling overbought territory during the recent surge. Currently, RSI is at 55.71, suggesting neutral momentum but leaning towards consolidation. The price now sits around $18.34, reflecting a slight pullback after reaching a session high of $18.74.
Resistance appears near $18.50–$18.75 as the price struggled to maintain upward momentum. Support levels can be observed around $17.00–$17.50, offering potential entry points if a retracement occurs. The recent price breakout and volume spikes suggest a bullish bias in the short term, though continued strength is contingent on holding above $18.
Traders should monitor RSI divergence and volume patterns to confirm a potential continuation of the uptrend or a reversal. A break above $18.75 could pave the way for higher highs, while failure to hold $18 may signal a correction toward key support zones.
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